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Yeh agree with the comments above. I purchased a PPOR in Howard Springs (about 30km south – 5 acres and house) in 2003 which is now an IP. has increased in price by nearly 300% in that time which has been great. The prices really took off in 2004 with continued growth each year thereafter.
I note that prices have not moved too much in the last 12 months and forecasts for possibly stagnant growth in the short term. There is planning to build another LNG plant which will be another huge infrastructure project that should see a return to growth. Darwin is continually growing. I visit every six months and continue to see the results of this growth with every visit.
Whilst Darwin has been good for me, the prices are a too high at the moment to consider buying again. I have read some reports indicating townhouses or older homes in Grey, Palmerston could be good buys with god growth potential but as long as you get the right tenants.
Thanks for the info. I just put that to an RE here and all I got was yeh, it is heaps more expensive over here! Honest at least. Makes you wonder why there is such a difference and also weather this effects peoples plans to invest in WA? Also funny how when you question it they throw back the god ole 'well you can claim it on tax line' as if that is all that matters.
On the bright side though I was informed that for two weeks rent they can find a tenant, have them checked for my approval, draft up the lease and then handover for me to manage with no ongoings. Given I am in close proximity to the property and do not see the management side as a chore it sounds like a good option – and saving about 60 / week give or take. I am currently self managing a rental property but it is occupied by friend.
Is anyone self managing their investment properties with tenants who you did not previously know and how is it going? Is it worth your while?
i just received an additional quote:
1. Management fee of 9.3% of rent (wow)
2. Letting fee of 1 weeks rent (6 Months), 2 weeks rent (12 months)
3. Incoming inspection fee – $150
4. Outgoing Inspection fee – $88
5. $55 per routine inspsection
6. Advertising $100
7. Administration $11
8. $4.50 per tenant checkand the list goes on!
To add to the above do you recommend using a Property Manager or is it a viable option to manage yourself?
Without knowing the exact area it is hard to tell. In property investment is usually best to own the worst house in the best street as opposed to the best house in the worst street. It is all about the location. Whilst I would not like to judge a book by its cover, if it looks like a duck, walks like a duck and quacks like a duck, it is likely to be a duck. Bad neighbours will bring not only the sale price down but make the place less desirable for tenants to move into. Again if you are renting a house in rough neighbourhood with wild neighbours, that is the type of tenant you will attract … is that what you want looking after your hard earnt money? Trust me when I say that it is not worth the hassle … have been burnt (well the walls were at least!)
On the other side you might be able to use the current situation to drive the price to a crazy low, bight the bullet and hope area makes an improvement and get some good gains. Less than likely though.
